Armada I (NASDAQ:AACI) announced this morning that it has postponed its extension vote from 1 pm ET January 20 to the same time January 30, while noting that a recent proposed accounting change would not affect its redemption rate.
The SPAC caused a stir this week when it filed a supplement to its extension proxy stating that it intended to seek the ability to remove earned interest from the trust account to pay for any excise tax due to redemptions. There continues to be some uncertainty as to whether SPACs will be forced to pay the Inflation Reduction Act’s 1% excise tax on share buybacks for shares redeemed outside of a total liquidation.
Armada may have thought it was getting out ahead of this by stating in the proxy that this 1% would come from earned interest in its trust. But, coming so soon on the eve of a vote, investors are sure to have preferred the tax was not paid from the trust.
It has now clarified that it “will not adjust the estimated redemption price per share for the Company’s estimated tax liabilities relating to the interpretation and operation of the Inflation Reduction Act of 2022.” As such, its redemption price is to remain $10.17 per share for now.
Armada I still has time to make further clarifications or revisions if need be as its transaction deadline is not until February 17. But, it is also likely eager to get on with it as it works to close its combination with adtech firm Rezolve, which is now the 7th-oldest pending deal in circulation having been announced in December 2021.
Terms Tracker for the Week Ending June 13, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This week brought three new SPAC IPOs with pricings from BEST SPAC I Acquisition Corp., Blue Acquisition Corp. and Blue Water Acquisition Corp. III. All...
Starry Sea (NASDAQ:SSEAU) has filed for a $50 million SPAC with leadership that is making its debut as SPAC officers and a broad search mandate. The new SPAC is offering investors one right to a 1/6 share in each unit and a redemption opportunity coming at the end of its 15-month initial transaction deadline if...
At the SPAC of Dawn Israel’s bombing of sites in Iran has brought a new injection of uncertainty to the markets, which appear poised to open in the red. But, this may be a temporary factor after the week has also produced better-than-expected indicators on inflation. One more data point is set to come in...
Best SPAC I Acquisition Corp. (NASDAQ:BSAAU) announced the pricing of its $55 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “BSAAU”, Friday, June 13, 2025. The new SPAC plans to combine with a consumer goods company with a total enterprise value between $100 million and $600 million....
Blue Acquisition Corp. (NASDAQ:BACCU) announced the pricing of its $175 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “BACCU”, Friday, June 13, 2025. The new SPAC intends to combine with a target company within a manufacturing company or data center that aligns with green energy initiatives and...